Wednesday, July 09, 2014

Tom Perkins on the Internet Bubble 2.0

Instead, [Tom Perkins] blames the [San Francisco gentrification] problems on social and monetary policy set
by Washington—low interest rates and the recent Keynesian interlude. In
Perkins’s eyes, San Francisco’s tech boom is the result of these
policies. The venture market is a risky, low-return investment
environment, but it’s currently the only option available for reasonable
returns. If interest rates rise once more, wealth will settle into
other spaces.

Actually, I agree. While Sarbox may be a bad law, tech companies aren't staying private because being public is so bad, they are staying private because now there is plenty of money there. In our current economic climate of low interest rates and too-small deficits, money seeking a return has few options and VC, plus later mezzanine rounds, provide some return. You no longer need to go public to reach a $1B valuation.

posted by winterspeak at
4:00 PM Tom Perkins on the Internet Bubble 2.0